Order processing is the administrative and control phase of order fulfillment that ensures every order is complete, accurate, financially approved, and operationally feasible before physical execution begins. It includes order entry, stock reservation, credit authorization, pricing verification, and transmission of instructions to the warehouse and transport teams, forming the backbone of error-free fulfillment.
Characteristics:
- Validates customer orders
- Confirms stock availability
- Integrates credit and pricing checks
- Releases orders for execution
- Prevents administrative errors